New mental health partnership including Centers, Meridian and LifeStream

Published: Wednesday, June 26, 2013 at 6:00 p.m.

Last Modified: Wednesday, June 26, 2013 at 6:00 p.m.

Three regional mental healthcare providers announced Wednesday that they are merging.

The providers — the Centers in Ocala, Leesburg-based LifeStream Behavioral Center and Gainesville-based Meridian Behavioral Healthcare — say the move will best position them to adapt to the changing healthcare environment, and to better serve clients.

“The opportunities are endless,” Centers CEO Charles Powell said. “This is the most optimistic I’ve been in the 30-something years (I’ve been involved in mental healthcare.)”

During an afternoon news conference at the Centers, chief executives and board chairpersons of the three providers signed a letter of intent to continue the merger process, which began eight months ago.

Powell said merging would allow each organization to utilize and learn from the expertise of the others.

Although each organization provides basic mental healthcare, each also puts some of its focus on specialized care.

LifeStream works closely with the state when creating new mental health programs, LifeStream Chairman Tim Morris said.

And Meridian does significant work with people who have mental health issues and have been arrested and face potential jail or prison time, said Meridian CEO Maggie Labarta.

Clients will benefit because demand for some services, such as autism services, are not large enough to warrant them provided only by one organization. But they could be warranted by the merged, larger group, Labarta said.

Jon Cherry, Lifestream’s CEO, said before the press conference that the merger will also have financial benefits.

The merged, single company would serve a larger demographic — about 1.4 million people in 14 counties — and be better positioned to win service contracts as a result, he said. The newly merged company would also have greater political power in Tallahassee, he said.

Cherry said the merger would involve the creation of a parent organization — name yet to be decided — to oversee the three existing organizations, but that the Centers, LifeStream and Meridian would continue to do business more or less as they do now.

He said mergers of mental healthcare organizations are becoming common. There will be no layoffs, and each CEO will serve for one year as the parent organization CEO until a permanent CEO can be found. Powell said the goal is to form the parent company by January.

Cherry said each of the three nonprofit, mental healthcare providers would have two representatives on the parent company’s board.

The merger, if it is completed, will create Florida’s largest, single mental healthcare provider.

Currently, each serves about 15,000 clients. Meridian has an annual $31 million budget; the Centers a $32 million budget; and LifeStream a $34 million budget.

The Centers has been serving Marion and Citrus counties for 41 years and has more than 600 employees, according to the Centers’ press release. “This is heart work, and we are entering into this affiliation with our mission in the forefront and the people we serve as our top priority,” Powell said in the release. “With change comes great opportunity and this historic partnership will allow us to expand our reach and enhance treatment outcomes for consumers.”

<p>Three regional mental healthcare providers announced Wednesday that they are merging.</p><p>The providers — the Centers in Ocala, Leesburg-based LifeStream Behavioral Center and Gainesville-based Meridian Behavioral Healthcare — say the move will best position them to adapt to the changing healthcare environment, and to better serve clients.</p><p>“The opportunities are endless,” Centers CEO Charles Powell said. “This is the most optimistic I've been in the 30-something years (I've been involved in mental healthcare.)”</p><p>During an afternoon news conference at the Centers, chief executives and board chairpersons of the three providers signed a letter of intent to continue the merger process, which began eight months ago.</p><p>Powell said merging would allow each organization to utilize and learn from the expertise of the others.</p><p>Although each organization provides basic mental healthcare, each also puts some of its focus on specialized care.</p><p>The Centers, for example, has extensive child welfare and case management expertise, Powell said.</p><p>LifeStream works closely with the state when creating new mental health programs, LifeStream Chairman Tim Morris said.</p><p>And Meridian does significant work with people who have mental health issues and have been arrested and face potential jail or prison time, said Meridian CEO Maggie Labarta.</p><p>Clients will benefit because demand for some services, such as autism services, are not large enough to warrant them provided only by one organization. But they could be warranted by the merged, larger group, Labarta said.</p><p>Jon Cherry, Lifestream's CEO, said before the press conference that the merger will also have financial benefits.</p><p>The merged, single company would serve a larger demographic — about 1.4 million people in 14 counties — and be better positioned to win service contracts as a result, he said. The newly merged company would also have greater political power in Tallahassee, he said.</p><p>Cherry said the merger would involve the creation of a parent organization — name yet to be decided — to oversee the three existing organizations, but that the Centers, LifeStream and Meridian would continue to do business more or less as they do now.</p><p>He said mergers of mental healthcare organizations are becoming common. There will be no layoffs, and each CEO will serve for one year as the parent organization CEO until a permanent CEO can be found. Powell said the goal is to form the parent company by January.</p><p>Cherry said each of the three nonprofit, mental healthcare providers would have two representatives on the parent company's board.</p><p>The merger, if it is completed, will create Florida's largest, single mental healthcare provider.</p><p>Currently, each serves about 15,000 clients. Meridian has an annual $31 million budget; the Centers a $32 million budget; and LifeStream a $34 million budget.</p><p> </p><p>The Centers has been serving Marion and Citrus counties for 41 years and has more than 600 employees, according to the Centers' press release. “This is heart work, and we are entering into this affiliation with our mission in the forefront and the people we serve as our top priority,” Powell said in the release. “With change comes great opportunity and this historic partnership will allow us to expand our reach and enhance treatment outcomes for consumers.”</p><p><i>Reach Fred Hiers at fred.hiers@starbanner.com and 352-867-4157.</i></p>